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China approves HP's $1.1 billion buy of Samsung's printer business with curbs

BEIJING (Reuters) – China said on Thursday it has approved HP Inc’s (HPQ.N) $ 1.1 billion purchase of Samsung Electronics’ (005930.KS) printer business with certain restrictions, citing concerns about the U.S. firm’s dominance of the domestic laser printer market.

HP announced the deal in September 2016, hoping to disrupt the $ 55 billion copier market by focusing on multifunction printers and more deeply embedding mobile and cloud printing technologies to its product solutions.

It hoped at the time to close the transaction within 12 months, pending regulatory review.

In a statement issued late on Thursday, the Ministry of Commerce said sale of A4 format laser printers by HP in China should be done on “fair and reasonable” terms and the firm must report every six months on their prices and related data to the ministry.

HP must not buy any stakes in other A4 printer manufacturers in China even if they are a minority equity investment, it said.

It must not adapt its printers to restrict compatibility with third-parties or claim in advertising that its printers are not compatible with other suppliers, the ministry said.

HP expects to close the acquisition in the fourth quarter which ends on Dec. 31, a spokeswoman said in an email. She declined to comment on the regulatory process.

Samsung was not immediately available for comment.

Under the deal, HP would add an intellectual property portfolio of more than 6,500 printing patents and nearly 1,300 researchers and engineers with expertise in laser printer technology, imaging electronics and printer supplies.

Reporting by Josephine Mason and Stella Qiu; Editing by Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.


BYD expects all vehicles in China to be completely electrified by 2030

SHENZHEN (Reuters) – Chinese automaker BYD Co Ltd (002594.SZ) expects all vehicles in the country, including private vehicles, to be completely electrified by 2030.

Over 20 cities in China will begin building BYD sky rail next year, the company’s president, Wang Chuanfu, told reporters at a briefing in Shenzhen on Thursday.

BYD’s first sky rail project was launched in China’s northwestern city of Yinchuan at the beginning of this month.

He also said China needs to sell 2.5 million vehicles in 2020 to meet its 2020 new energy vehicle target of accumulated sales of up to 5 million units.

Reporting by David Stanway

Our Standards:The Thomson Reuters Trust Principles.